Below is information for Boswell Manufacturing Company:

(a) Long-term debt of \($450,000\) was retired at face value.

(b) New machinery was purchased for \($48,000\).

(c) Common stock with a par value of \($120,000\) was issued for \($150,000\).

(d) Dividends of \($18,000\) declared in 2001 were paid in January 2002, and dividends of

\($27,000\) were declared in December 2002, to be paid in 2003.

(e) Net income was \($320,800.\) Included in the computation were depreciation expense of \($60,000\) and goodwill amortization of \($30,000\).  

 

Prepare a statement of cash flows for the year ended December 31, 2002, using the indirect method.

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Current assets: Cash and cash equivalents Accounts receivable... Inventory Current liabilities: Accounts payable Dividends payable Interest payable Wages payable Dec. 31, Dec. 31, 2002 2001 $187,100 $140,000 213,000 200,000 192,000 162,000 51,000 85,800 27,000 18,000 11,100 3,000 84,000 12,000